The city s hotel industry posted positive year-over-year occupancy gains every month during 2010, averaging to a 9.4% increase to 62.9% through July 2010, according to data from STR. Revenue per available room has been less consistent, albeit day tours from london generally positive; after a 4.6% decrease during January and another stutter during April, the market experienced jumps of 18.8%, 19.1% and 15.6% during May, June and July, respectively. Through July 2010, RevPAR day tours from london growth has averaged 8.3% to US$58.80.
Denver is the second fastest recovering RevPAR city (since April 2010 based on a trailing 12-month analysis), said Orly Ripmaster of Boulder, Colorado-based STR Analytics. In the short term, it s doing very well.
We re seeing the return in business day tours from london travel and some growth in our transient travelers especially from the mountain regions, general manager David Craig said. The trend that I m seeing is appearing to be consistent with what other hotels in Denver are seeing.
Nearly eight miles west along I-40, the Candlewood Suites Denver-Golden-Lakewood is a case in point. The all-suites property has done very well during 2010, director of sales Lisa Kennedy said, exceeding budget expectations by about 10% thus far and by 6% during the second quarter.
Denver is rebounding, said Mike Cahill, CEO and founder of HREC , a brokerage and advisory services firm based just outside Denver. It s more of a situation where people are looking at recovery, looking at numbers to see if Denver is coming back. Some of the hotels are coming back pretty strong.
During 2009, for example, leisure tourism saw a 4% increase compared to a national decline of nearly 5%, according to Rachel Benedick, VP of sales and services for Visit Denver . Convention business was down 6% compared to the national average of 22%.
Sources attributed the cushioned blow to the market s relatively vibrant economy, which is fueled by both entrepreneurial and green start-ups as well as the growing day tours from london presence of major national corporations.
There are a huge number of new companies that have relocated or expanded day tours from london out here, Hennis said, citing ConocoPhillips plans to build a new hub for training day tours from london and development along the Boulder corridor.
A shorter climb out of the recession doesn t necessarily mean it will be an easy one, however. The Denver hotel market still faces obstacles, many of which are out of the hands of owners and operators.
There are so many other factors that impact the state of the economy. If housing values are dropping and homes are not turning over, that gets the media latched on to the potential that the economy is not turning around, the Hotel Teatro s Craig said.
The market s convention business also is faced with growing competition from new markets, Benedick said. Whereas meeting planners for city-wide day tours from london conventions used to rotate between five or six cities, they now can choose between recently built facilities in 10 to 12. The competition continues to be fierce among cities and convention centers, she said.
Competition extends beyond the convention sector, however. The city s downtown will soon be faced with two major hotel openings: the 239-room (and 21-suite) day tours from london Four Seasons Hotel Denver and a 403-room Embassy Suites.
People are waiting to see how that supply is absorbed, Cahill said, citing the Four Seasons in particular because the downtown area already boasts the Ritz-Carlton Denver as a luxury-segment offering. The real test will be how deep the luxury market is with the Four Seasons.
Average daily rate growth in the market began the year on a down note with declines from January through April. Despite modest increases in May, June and July, Denver has averaged a 0.9% decline to US$93.56 year-to-July.
There s hope for the Mile-High city yet, however. In her top-level analysis, Ripmaster found the top 25 markets that have successfully been able to grow rate during the trailing 12 months since April 2010 also have achieved slightly greater than 2% TTM occupancy growth.
East Coast hoteliers day tours from london brace for Hurricane Sandy Hoteliers evolve mobile distribution strategy 'Luxury' doesn't always define boutique hotels 3 lessons for the hotel leaders of tomorrow Shareholder offers $1.86b for Orient-Express In-room digital concierge
Hoteliers evolve mobile distribution strategy Sources: Keep online review responses in-house Amenity creep focusing on long-term benefits An independent view on revenue management 3 lessons for the hotel leaders of tomorrow How to identify and address human trafficking
TripAdvisor backs legitimacy of reviews Women-only floors cater to growing market Owners fear agency model will slash profits La Quinta's plan to sell assets is 'strategic' Blackstone could take Motel 6, Studio 6 global Pop-up hotels a big hit in the niche segment
panu
ReplyDelete